PRUDENTIAL FINANCIAL INC

Business Updates

•In July 2026, the Company entered into an agreement to acquire the remaining 25% interest in Deerpath Capital Management, LP (“Deerpath”), bringing the Company’s ownership to 100% after acquiring a 75% majority stake in December 2023. The closing of this transaction is subject to regulatory approvals and customary closing conditions.

•In April 2026, the Company entered into an agreement to sell its PGIM operations in India (“PGIM India”) to TVS Venu Group, a diversified India-based company. The closing of this transaction is subject to regulatory approvals and customary closing conditions. Beginning in the first quarter of 2026, the results of PGIM India are reflected in Divested and Run-off Businesses included within our Corporate and Other operations. PGIM India was not a significant contributor to PGIM’s results in any period prior to its transfer.

The following table sets forth PGIM’s operating results for the periods indicated:

(1)Certain of PGIM’s investment activities are based in currencies other than the USD and are therefore subject to foreign currency exchange rate risk. The financial results of PGIM include the impact of an intercompany arrangement with our Corporate and Other operations designed to mitigate the impact of exchange rate changes on PGIM’s USD-equivalent earnings. For additional information regarding this intercompany arrangement, see “—External and Economic Factors—Impact of Foreign Currency Exchange Rates,” above.

(2)Includes certain components of consideration for business acquisitions, which are recognized as compensation expense over the requisite service periods.

The following table sets forth PGIM’s revenues, presented on a basis consistent with the table above under “—Operating Results,” by type:

(1)Includes revenues from the Company’s general account assets, as well as certain separate account assets of the Company’s insurance and retirement businesses managed by PGIM.

(2)Includes mortgage origination revenues from our commercial mortgage origination and servicing business.

Adjusted operating income increased $65 million, primarily reflecting:

•higher net asset management fees;

•higher net service, distribution and other revenues; and

•higher net other related revenues.

Revenues increased$64 million, primarily reflecting:

•higher asset management fees, driven by higher average assets under management from the impact of equity market appreciation, and strong investment performance, partially offset by net outflows and the impact of higher rates on asset values;

•higher other related revenues, primarily reflecting higher commercial mortgage origination revenues from higher loan production, and higher seed and co-investments revenue driven by stronger investment performance; and

•higher service, distribution and other revenues, including from higher securities lending and interest income.

Expenses decreased$1 million, primarily reflecting:

•lower operating expenses, primarily driven by current year savings resulting from a business reorganization in the prior year.

This variance was mostly offset by:

•higher variable and other expenses, primarily driven by higher fee-based earnings, partially offset by savings resulting from a business reorganization, as discussed above.

Adjusted operating income increased $99 million, primarily reflecting:

•higher net asset management fees;

•higher net service, distribution and other revenues; and

•higher net other related revenues.

•higher operating expenses.

Revenues increased $119 million, primarily reflecting:

•higher asset management fees, driven by higher average assets under management from the impact of equity market appreciation and strong investment performance, partially offset by net outflows and the impact of higher rates on asset values;

•higher other related revenues, primarily reflecting higher commercial mortgage origination revenues from higher loan production, and higher seed and co-investments revenue driven by stronger investment performance; and

•higher service, distribution and other revenues, primarily drivenby higher real estate servicing fees from increased transaction volume, as well as higher securities lending and interest income.

Expenses increased $20 million, primarily reflecting:

•higher operating expenses, largely driven by higher compensation expenses supporting business growth, partially offset by current year savings resulting from a business reorganization, as discussed above; and

•higher variable and other expenses, primarily driven by higher commissions related to higher loan production, and higher interest expense, partially offset by savings resulting from a business reorganization, as discussed above.

Assets Under Management

The following table sets forth assets under management by asset class as of the dates indicated:

(1)“Public equity” represents stock ownership interest in a corporation or partnership (excluding hedge funds) or real estate investment trust. “Public credit” represents debt instruments that pay interest and usually have a maturity (excluding mortgages). “Private credit” represents debt financing issued by entities directly to investors outside of public capital markets. “Real estate” includes direct real estate equity and real estate mortgages. “Multi-asset” represents funds or products that invest in more than one asset class, balancing equity, public credit, and target date funds. “Other alternatives” represents private equity, hedge funds, and other alternative strategies.

(3)Primarily includes assets related to certain insurance and retirement products in our U.S. Businesses and Corporate and Other operations, and certain general account assets in our International Businesses. These assets are not directly managed by PGIM but rather are invested in non-proprietary funds or are managed by either the divisions themselves or by our Chief Investment Officer Organization.

The following table sets forth assets under management by source as of the dates indicated:

(1)Includes the Company’s general account assets, as well as certain separate account assets of the Company’s insurance and retirement businesses managed by PGIM.

(2)Primarily includes assets related to certain insurance and retirement products in our U.S. Businesses and Corporate and Other operations, and certain general account assets in our International Businesses. These assets are not directly managed by PGIM but rather are invested in non-proprietary funds or are managed by either the divisions themselves or by our Chief Investment Officer Organization.

The following table sets forth the component changes in PGIM’s assets under management for the periods indicated:

(1)Represents assets that PGIM manages for the benefit of other reporting segments within the Company. Additions and withdrawals of these assets are attributable to third-party product inflows and outflows in other reporting segments.

(2)Realizations reflect proceeds from the disposition or monetization of assets from closed end funds and from collateralized loan obligations. Distributions reflect income and dividend distributions related to certain closed and open ended private alternative funds and collateralized loan obligations.

(3)Includes income reinvestment, where applicable.

As of June 30, 2026, PGIM’s assets under management:

•increased $51 billion over the trailing twelve months, primarily driven by equity market appreciation and strong investment performance, partially offset by realizations and distributions, unfavorable foreign exchange rate impacts, and net outflows.

•increased $25 billion in comparison to the prior year end, primarily driven by equity market appreciation and net inflows, partially offset by realizations and distributions and unfavorable foreign exchange rate impacts.

The following table sets forth additional information for “total net flows” as seen above, by asset class for the periods indicated:

Private Capital Deployment

Private capital deployment is indicative of the pace and magnitude of capital that is invested and will result in future revenues that may include management fees, transaction fees, incentive fees and servicing revenues, as well as future costs to manage these assets.

Private capital deployment represents the gross value of private capital invested in real estate debt and equity, and private credit and equity asset classes. Assets under management resulting from private capital deployment are primarily included in “Real estate,” “Private credit,” and “Other alternatives” in the “—Assets Under Management— by asset class table” above. As of June 30, 2026, these asset classes increased $1.3 billion compared to December 31, 2025, primarily reflecting net inflows across the private credit and real estate asset classes, and market appreciation, partially offset by realizations and distributions.

Private capital deployment includes PGIM’s real estate agency debt business, which consists of agency commercial mortgage loans originated and sold to third-party investors. PGIM continues to service these loans; however, they are not included in assets under management.

The following table sets forth PGIM’s private capital deployed by asset class for the periods indicated:

Seed and Co-Investments

As of June 30, 2026 and December 31, 2025, PGIM had approximately $876 million and $1,155 million of seed investments and $553 million and $375 million of co-investments at carrying value, respectively, primarily consisting of public and private credit, public equity, real estate investments, and other alternatives.